‘Cyprus no longer part of Eurozone’

Cyprus means so little to the Eurozone’s economy that it can't count on any bailouts from Brussels, believes Paris based economic expert Marcus Kerber.

Cypriot politicians are apparently aware and clearly show who is
in charge economically speaking - it is Moscow, not
Brussels.

RT:There appears to be a stand-off between the EU and
Cyprus with neither side willing to make concessions. Do you expect
either side to give in?

Marcus Kerber: For the time being Cyprus is having the
upper hand and the blackmail policy made by the Cyprus government
seems be working, although Cyprus is 100% dependent on the
willingness of the European Union to bail out the island.

Let’s remember one thing: Cyprus represents 0.7% of the gross
national product of the Eurozone. So it is not an essential part of
the Eurozone. And bailouts are only allowed – according to the
European Stability Mechanism – if country really represents an
essential part of the Eurozone and its stability is vital for the
stability and sustainability of the Eurozone.

We have to come up with a decision: Cyprus is no longer a part
of the Eurozone. And the behavior of Cyprus politicians shows who
is quite clearly in charge of the island economically speaking. It
is Moscow, not Brussels, and we have to draw conclusions from that
as quickly as possible.

RT:How is the Cyprus drama resonating in other
vulnerable Eurozone countries - like Greece and Portugal? Could we
see an investment exodus from these countries after what's
happened?

MK: No. The situation is absurd. After years and years of
a policy which is a part of regulation arbitrage, and offshore
paradise offers made to non-residents, which has created a bubble
economy and a bubble banking community, which is truly
disproportional to the gross national product of the island.

Now the EU community has to bail the island out without too much
solidarity from the other European tax payers.

The Greek case has always been qualified by the EU rescuers as a
unique case. Apparently it is no longer.

The Greek banks, despite a horrible situation, seem to be making
bets for the affiliates in Cyprus.

It has always been said that those who have broken the rules of
the European community – and Cyprus is a part of that – they have
no real economic weight to dictate the policy of the European
Community.

If the European Community gives in, then the authority of
Brussels is gone or disappearing.

RT:The German Finance Minister has warned Cyprus that
its banks may never be able to reopen if the country rejects the
terms of the EU-IMF bailout. Is that a real possibility or an empty
threat?

MK: This is a response to the blackmail position of the
Cyprus Finance Minister and Prime Minister, who said the Cyprus
population is against any fair part of recapitalization of the
[national] banks, let the European taxpayers pay for Cyprus
banks.

We have offered conditions for the accounts which are beyond
anybody’s dreams, which offered low tax rates and have let in
people from abroad, non-residents and not involved with the Cyprus
population. Let’s take this into account as well.

In Germany we are going to have election in the autumn. And the
German population, after the Greek bailout, the Irish bailout, the
Portuguese bailout and the Spanish bailout now is confronted with
another absurd case of bailing out a country which is not at all
essentially a part of the Eurozone and which in the past has
benefited enormously from the euro not in order to build an
economy, but in order to build an off-shore zone. An off-shore
zone, which is not a part of the European project or the euro
project and not a part of a policy generally understood by the
largest majority of the population.